RUSSIA: May 7, 2019, ARIA starts checking insurer compliance with new mandatory standards

25 April 2019 — Marina MAGNAVAL
From May 7, 2019, the All-Russian Insurance Association (ARIA) will start checking insurer compliance with new mandatory standards related to operations on the insurance market and protecting consumer rights in insurance services, ASN reports.

According to Ludmila SENKINA, the director of the insurance control department at ARIA, "internal documents of ARIA provide four penalties for violation of mandatory standards, including a warning, a requirement to eliminate violation, fines and exclusion from ARIA as the toughest measure (based on the law, an insurer, who is not a member of the self-regulatory organization, can't perform any operations and have a license).

The new standards are not only for insurance companies, but also for agents and banks, which provide mediation services at issuance of insurance contracts. However, as the ARIA representative explained, under the law, the responsibility for compliance with mandatory standards lies with insurers, even in cases of violations committed by agents, penalties and other sanctions will be applied to insurers.

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